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liq [111]
3 years ago
15

Quirk Drugs sold an issue of 30-year $1,000 par value bonds to the public that carry a 10.85% coupon rate, payable semi-annually

. It is now 10 years later and the current market rate of interest is 9.00%. If interest rates remain at 9.00% until Quirk's bonds mature, what will happen to the value of the bonds over time?
Business
1 answer:
Dmitrij [34]3 years ago
3 0

The value of bonds will sell at premium and decline in value until maturity.

<u>Explanation:</u>

Coupon = \frac{0.1085 \times 2} {2} = 54.25

Number of periods =20 \times 2 = 40

Rate = \frac{9} {2} = 4.5%

Price = $1,170.21

Key to use in a financial calculator are: FV =1000, N = 40, PMT = 54.25,\frac {I}{Y} = 4.5. CPT PV

As the bond approaches maturity, price of bond will approach its face value.

Thu, it is clear that bonds will see at premium and would decline in value until maturity.

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Is it possible for a country to have a comparative advantage in producing a good without also having an absolute​ advantage? A c
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A country would have a comparative advantage to produce a good if the cost of producing this good, even if it produces efficiently, is higher than that of other countries.

Explanation:

The Competitive Vantage Principle explains how an individual produces more commodities and uses fewer goods with a comparative advantage under freer trade.

For example, the comparative advantage of oil-producing countries in chemical products. Compared to countries that are not there, the local manufactured oil is a cheap source of chemicals.

It can produce products with fewer resources, which offers countries a comparative advantage at lower incentive costs. The PPF's gradient reflects the cost of output capacity. Improving one good's production means producing less of one.

8 0
3 years ago
Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street
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Options :

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b. ​opinion.

c. ​an adhesion contract.

d. ​fraud.

Answer: Fraud

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5 0
3 years ago
Other data not yet recorded at December 31 include Insurance expired during the current year, $6. Wages payable, $4. Depreciatio
galina1969 [7]

Answer:

Using the adjusted balances, give the closing entry for the current year.

Explanation:

1  

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Cr Prepaid expenses           6000

 

2  

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Cr Cash                                4000

 

3  

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Cr Accumulate depreciation     9000

 

4  

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Cr Tax payable                      7000

3 0
3 years ago
Read 2 more answers
1. Tells whether a company can pay all its current liabilities if they become due immediately 2. Measures a company's success in
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Match the following terms to there definition.

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2. Measures a company's success in using assets to earn income - Return on Assets

3. The practice of comparing a company with other companies that are similar - Benchmarking

4. Indicates how rapidly inventory is sold - Inventory turnover

5. Shows the proportion of a company's assets that is financed with debt - Debit Ratio

6. Tells the percentage of a stock's market value that the company returns to stockholders annually as dividends - Dividend Yield

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What is the key feature in basic automobile insurance ?
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The last one is collision coverage, which support the fee of repair of vehicle due to the crash with other vehicle.

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